Page 63 - The Voice of Authority

results in a 15 percent decrease in revenue per direct
headcount year-over-year. However, most of this
headcount is being utilized to cover unplanned vaca-
tion and training requirements. This increased uti-
lization of excess direct manpower on indirect activ-
ities appears to be the primary factor for the declining
margin performance against plan. We should note
that there are other operational issues such as exempt
time reporting, partially utilized headcount at re-
mote sites, accounting issues, and bid margin pro-
jections, which need to be addressed. Please be ad-
vised that unless project revenue increases, any
incremental labor costs will increase period costs and
further reduce margins.”

Translation: “Our profit margin on the Division B
project has dropped by 15 percent this quarter be-
cause of increased labor costs. Several operational is-
sues, however, cause us to doubt the accuracy of that
figure: exempt-time reporting, staffing at remote
sites, accounting procedures, and the accuracy of
our original projections.”

Here’s another example you may have seen from your bank
or credit card company:

“Rolling consecutive twelve-month billing cycle pe-
riod.”
Translation: “The next 12 months.”

Why do people muddle simple messages? There are sev-
eral reasons.

Is It Clear? 51